Once you decide to buy a new home you get to make all kinds of fun decisions – Which neighborhood? One story or two? Quartz or granite counter tops? Painted or stained cabinets? Shiplap? The list goes on and on.
One decision that’s not as fun (and very unlikely to be inspired by HGTV binges) is who to select as a mortgage lender.
There are countless financial institutions who want to lend you money for your next home purchase, and it’s up to you to do your research. Check with friends, family, and existing bank relationships.
But as part of your research, you should also ask your home builder who their preferred lenders are.
A builder’s preferred lender is simply that – an institution that your builder prefers to work with. This is a lending team that your builder trusts to understand the intricacies of new home construction in your area. This is a group that already has a relationship with your builder, has financed other projects, and has already cleared the hurdles your loan is likely to face.
What this leads to is closing your home on time. This means you get the keys and can move in when you plan to!
For instance, if your appraisal is delayed your closing can get pushed back a week or more. A preferred lender will have experience with your builder; your city, county, and neighborhood; local appraisers; and will understand any unusual wrinkles you may face.
Also, a preferred lender often offers special incentives to home buyers. For instance, all Riverwood Homes preferred lenders offer a 1% credit to our buyers!
So do your homework, ask around, and collect quotes. But be sure you ask about a builder’s preferred lender as part of this research.
Riverwood Homes has two great lending partners we trust.
In Idaho, it’s Mark Onnen with Homebridge.
In Washington and Oregon, contact Keith Hobart with Peak Mortgage.